In October, prices for cattle for slaughter operated at higher levels than those observed in the previous month. According to Cepea researchers, the support came from the supply adjustment throughout the chain and also from the good performance of exports. The pace of business in the national spot market, however, was lower in October, precisely in this period that is traditionally marked by greater liquidity. This scenario is due to domestic meat sales still accommodating and the lengthening of slaughter schedules by some industries. Cepea researchers highlight that the increase seen from September to October is characterized as a recovery, considering that animal prices for slaughter had been recording consecutive monthly drops throughout this second half of the year.
CHICKEN: MARKET HEATS UP IN OCTOBER, AND PRICES GO UP
Liquidity in the Brazilian chicken market was strong throughout October. This scenario increased meat prices in most regions monitored by Cepea. According to collaborators consulted by the Research Center, part of this movement was a consequence of the holiday on October 12th (Day of Our Lady of Aparecida) and the proximity of All Souls’ Day (November 2nd). On the demand side, the dates led agents from wholesale and retail chains to increase demand for the protein. On the supply side, holidays resulted in a reduction in working days for slaughter, which, consequently, also limited the availability of meat on the national market and reinforced the upward movement in protein prices.
PIGS: PRICE MOVEMENTS ARE DIFFERENT AMONG SQUARES
Live pig and meat prices rose on the domestic market in the first half of October, but fell in the second half of the month. Cepea researchers highlight that, even so, while in some markets the upward movement in the first half guaranteed an increase in the October average compared to September, in others, the more intense devaluation in the second half of the month resulted in a drop in the monthly average . According to Cepea researchers, in the first weeks of October, the lower supply of animals in ideal weight for slaughter and the increase in demand increased the prices paid for new batches of live pigs and also for protein. In the second part of the month, with the decrease in liquidity, animal and meat prices fell, mainly influenced by the reduction in domestic demand. As for Rio Grande do Sul, the restricted supply increased and/or supported pork prices in October. According to state employees consulted by Cepea, this scenario is the result of small and medium-sized independent producers giving up their activity, due to the long period of negative margins, as a result of the high cost of production.